Showing 1 - 10 of 547
We study the implications of credit constraints for the sustainability of product market collusion in a bank-financed oligopoly in which firms face an imperfect credit market. We consider two situations, without and with credit rationing, i.e., with a binding credit limit. When there is credit...
Persistent link: https://www.econbiz.de/10011615847
We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if...
Persistent link: https://www.econbiz.de/10012269430
How much deposits and equity a bank has influences how a banks' lending responds to monetary policy. While the … show in a value-at-risk RTC model that the lending for banks with relatively more equity and non-interest-bearing deposits … should respond less to monetary policy tightening. This suggests that non-interest-bearing deposits act as "pseudo capital …
Persistent link: https://www.econbiz.de/10013470254
To reconcile the mixed empirical results, we develop a theoretical model whose main implication is a concave impact of regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to annual data from 1999 to 2011 drawn from 132...
Persistent link: https://www.econbiz.de/10012052830
traditional banks to modernize their core business activities. Banks attempt to confront the challenges of digitalization by … banks to form alliances with fintechs. Furthermore, we analyze whether such bank-fintech alliances affect the market … valuation of banks. We provide descriptive evidence on the different forms of alliances occurring in practice. Using hand …
Persistent link: https://www.econbiz.de/10011931920
The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international …
Persistent link: https://www.econbiz.de/10010266061
differences in financial factors, which may reflect differences in country risk and the legal and regulatory framework that banks …
Persistent link: https://www.econbiz.de/10010270550
equilibrium when banks have monopoly power, justifying a Pigouvian tax in this case. …
Persistent link: https://www.econbiz.de/10010274744
This paper investigates the benefits of banks' direct investment in foreign subsidiaries and branches for non …-financial multinationals. The paper builds on the literature on international banks which has primarily focused on the implications for host … the volume of FDI by home market banks boosts FDI by non-financial firms from the same home market. Domestic and third …
Persistent link: https://www.econbiz.de/10010274855
core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin’s Q are mean reverting but highly …
Persistent link: https://www.econbiz.de/10012799656